Correlation Between John Hancock and Amg Southernsun
Can any of the company-specific risk be diversified away by investing in both John Hancock and Amg Southernsun at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining John Hancock and Amg Southernsun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Disciplined and Amg Southernsun Small, you can compare the effects of market volatilities on John Hancock and Amg Southernsun and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in John Hancock with a short position of Amg Southernsun. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Amg Southernsun.
Diversification Opportunities for John Hancock and Amg Southernsun
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Amg is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Amg Southernsun Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Southernsun Small and John Hancock is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on John Hancock Disciplined are associated (or correlated) with Amg Southernsun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Southernsun Small has no effect on the direction of John Hancock i.e., John Hancock and Amg Southernsun go up and down completely randomly.
Pair Corralation between John Hancock and Amg Southernsun
Assuming the 90 days horizon John Hancock is expected to generate 1.21 times less return on investment than Amg Southernsun. But when comparing it to its historical volatility, John Hancock Disciplined is 1.24 times less risky than Amg Southernsun. It trades about 0.21 of its potential returns per unit of risk. Amg Southernsun Small is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,847 in Amg Southernsun Small on August 31, 2024 and sell it today you would earn a total of 173.00 from holding Amg Southernsun Small or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Disciplined vs. Amg Southernsun Small
Performance |
| Timeline |
| John Hancock Disciplined |
| Amg Southernsun Small |
John Hancock and Amg Southernsun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Amg Southernsun
The main advantage of trading using opposite John Hancock and Amg Southernsun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Amg Southernsun can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amg Southernsun will offset losses from the drop in Amg Southernsun's long position.| John Hancock vs. Touchstone Large Cap | John Hancock vs. American Mutual Fund | John Hancock vs. Tax Managed Large Cap | John Hancock vs. Qs Large Cap |
| Amg Southernsun vs. Vanguard Small Cap Index | Amg Southernsun vs. T Rowe Price | Amg Southernsun vs. HUMANA INC | Amg Southernsun vs. SCOR PK |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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